Presentation to: Ayrshire Occupational Health and Safety Group Presented by:

1. Environment and Sustainability Presentation to: Ayrshire Occupational Health and Safety Group Presented by: Michael Lynch, Serco Energy and Sustainability Team, mlynch@serco.com

2. People | Partnership | Public Service Presentation overview • My background and experience • Serco’s approach to environment and sustainability • Energy and Sustainability team activities and services • Case Study : GCC contract • Case study: Coke contract • General approach to improving ES performance • Forthcoming impacts • Links • Q & A

3. People | Partnership | Public Service Experience and Background Education and experience: • BSC Environmental Management and Technology @ Glasgow Caledonian until 2001 • Shell Technology Enterprise Programme 3rd & 4th year with Caledonian Alloys • Volunteered with BTCV – kerbside recycling / beach clean ups / rhoddy bashing etc • Energy Saving Trust – Energy Efficiency Advice Centre, supporting LAs • The Wise Group – social enterprise • Serco - public and private sector Integrated Services clients • 10 years experience covering public, private and third sector organisations My background and impact: • Interest in natural heritage and biodiversity • Hillwalking, fishing and golf • Green tariff, insulation, timers, my local farm, offset car emissions • Travel footprint large – work from home, webinars to offset • 2 kids!

4. People | Partnership | Public Service A Unique Company… Serco is a FTSE100 international service company which combines commercial know-how with a deep public service ethos

5. People | Partnership | Public Service Serco’s approach to Environment and Sustainability Did you know ? “Serco are committed to delivering sustainability both globally and locally, for example we contribute to the Intergovernmental Panel on Climate Change via our work at the National Physics Laboratory and are involved in operating the London Bike Scheme” • Operating in UK since 1929 and now delivering sustainability across the public sector • Corporate Assurance Group • Divisional Environmental Management System 2005 • Divisional Carbon Management Strategy 2006 • Recognition for CSR achievements via Business In the Community (BITC) • Serco Strategy Director sits on the UK government’s Sustainable Development Commission • Serco CEO appointed as BITC National Ambassador in 2009 • Energy and Sustainability business unit since 2008

6. Targeted Service Outcomes Cost savings Carbon reductions Legal compliance Enhanced reputation Engaged employees Cutting edge technology Smart commercials Energy & Sustainability Business unit services

7. E&S Team Selected Experience • Energy and Sustainability audits • State Street Bank EMEA offices • Technical energy audit campaigns • Deloitte / Glasgow City Council / Microsoft • Tariff analysis and bill validation • Glasgow City Council • Utility procurement and energy bureau services • Coke / State Street Bank EMEA offices • Utility monitoring and measurement software • Coke / UK government • Shared savings initiatives / technical solutions • Range of public and private sector clients

8. E&S Team Selected Experience • EMS development / implementation / support • Coke / State Street Bank / Deloitte Ireland / Access • Landfill avoidance / Waste minimisation • Selected health sector clients • Carbon Offset advice • Deloitte Ireland • Greenhouse Gas Measurement and Reporting • Coke / Deloitte Ireland • Organisational culture / behavioural change • Coke / Glasgow City Council • Sustainability Strategy • Ofsted

9. ResourceCost AnnualSavings Case study: GCC – Savings delivered 2009

10. People | Partnership | Public Service Case Study: Coke • Green team formalised with Senior Management • Implemented ISO 14001 in corporate HQ • Sustainability services embedded within Serco FM services • Building operation improvements CapEx - Plant / waste / lighting • Supply chain improvements • Best Green Companies Awards • Communication – engaged employees • Pushing improvement through ISO

11. People | Partnership | Public Service Improving Performance – EMS model • Understand impacts and compliance • Set targets • Commit resources • Allocate responsibilities • Communicate • Formalise documentation • Monitor and measure • Review performance • Continual improvement • Ongoing Senior management commitment vital

12. People | Partnership | Public Service Improving Performance – Focus areas • Environmental legislation – waste, oil management, refrigerants, COSSH etc • Monitoring and measurement • Utility use • Waste hierarchy • Resource efficiency • Supply chain • Business travel • Communications and training – staff engaged and informed • Corporate image

13. Improving performance – sustainability roadmap Deliver Projects Realise Benefits Develop Strategy Establish ‘Greenprint’ Big picture 3-5 year roadmap Clear overarching targets Priority based actions Carbon reduction Utility Management Waste and Recycling Cost savings GHG measurement Engaged workforce Supply chain Compliance Critical Success Factors Behavioural change Best Practice Budget Requirements Delivery Timescales Continual improvement

14. People | Partnership | Public Service Forthcoming Impacts – CRC Energy Efficiency Scheme • The CRC Energy Efficiency Scheme is a mandatory “Cap & Trade” climate change and energy saving scheme. It will affect organisations in the private and public sector including the NHS, Schools & Local Authorities. • Registration due 31st September 2010. Information needs to gathered from year 2008 to verify qualification. • On an annual basis organisations will be required to report all their UK-based CO2 emissions from all their fixed point energy sources electricity, gas, oil and LPG. • Inclusion Assessment required if not already undertaken • Early action metrics • Compliance strategy (cash flow impact, OpEx, CapEx, Growth, property portfolio, competitor analysis, financial and brand risk) • Government spending review will affect CRC EES

15. People | Partnership | Public Service Forthcoming Impacts – GHG Measurement and reporting • Climate Change Act • 2012 mandatory GHG • Scope unclear as yet • Accurate picture of CC impact • Regulatory schemes in place • Medium – low impact • Non energy intensive

16. People | Partnership | Public Service Forthcoming Impacts – GHG Measurement and reporting • Internationally recognised Greenhouse Gas Protocol • 3 scopes

17. People | Partnership | Public Service Forthcoming Impacts – GHG Measurement and reporting • Defra / DECC guidance • Refined, more precise • CO2e Conversion factors • Comprehensive guidance • - Calculating • - Tracking emissions • - Reporting

18. People | Partnership | Public Service Forthcoming Impacts – GHG Measurement and reporting

19. Links • Wrap – resource efficiency • Netregs – SME env legislation • Carbon Trust – low carbon economy • Energy Saving Trust – assist with domestic sector / employees • Act on CO2 – climate change • SEPA – regulation issues • Defra / DECC - guidance

20. Q A & Discussion & Clarifications